How to Start Trading on a Mini Forex Account

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Mini forex accounts or forex minis are typical accounts which are used by day traders who do not want to trade high volume of capital using contract sizes of 100,000 or more. A forex mini account typically offers contract sizes of 10,000 instead of 100,000 and margin requirements per contract of usually $ 50 or more instead of the $ 1,000 to $ 2,000 per contract required in a regular account.

High leverage and low margin in these mini forex accounts play a very important role in magnifying trading gains as well as losses. Mini forex trading accounts come with lower account minimums than regular accounts, which enable small investors to day trade in foreign currencies.

Many currency brokers offer a wider spread for mini accounts and most of them do not charge any transaction fee for the trading. If the mini contract is 10,000 units of the base currency, then all of the extents are one tenth of a regular account with a lot size of 100,000 lot sizes. For example, the value of 1 pip for the EUR / USD on a mini contract is $ 1 dollar instead of $ 10 as in regular accounts.

Mini forex accounts are designed for new investors. The smaller trade size gives the traders the opportunity to trade live but with less risk or exposure to the market. If you are planning to open an automated or managed forex account with some brokerage firm it is advisable to open a mini account instead of a regular one as you can check the quality, reliability and functioning of the trading platform without incurring losses.

As the pip value on the mini forex account is just $ 1 per pip, you can focus on developing a disciplined trading strategy. For example, in a mini forex account a 50 pip floating loss is approximately $ 50 instead of $ 500 for a standard forex account. So the mini forex account makes it easier to develop a disciplined trading strategy.

In most of the mini forex trading accounts there is no limit in maximum trade volume and standard default trade size can be of 100,000 units that is equivalent to one standard lot.

This ensures that you become more experienced and build up confidence before you can increase the size of your positions to maximize profits. In fact the trade size of 10,000 units allows for more flexibility in terms of customizing the size of your trade.

The mini forex account offers all the benefits of a full-size forex account. You will receive the same real-time, streaming quotes as the regular accounts with same order execution and fill reports facilities. The account information will always be real-time and in most of the cases without any commission charged by the broker.

Since the pip values ​​vary between the different currency pairs, a $ 10K account with a 25 pip profit on a mini forex account, the Euro trade is $ 25. A mini forex account, therefore, allows you to focus on technical analysis instead of the profit and exit at the right point.

It is ideal for new traders or investors with an account balances less than $ 10,000 to trade with a mini forex account. It provides more staying power in the market without over-leveraging your account.

For an initial deposit of $ 250, you can open and fund a live forex mini account with the facilities of bank wire transfer or fund transfer by credit card. Mini forex accounts are a great way to experience the excitation of currency trading while minimizing your risk.

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Source by Paul Bryan

Trading Forex – Why Trade Currencies? (Part 1 Of 2)

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When a person wants to enter trading arena, one of the most important questions is "What should I trade?". There is an overwhelming choice of financial instruments available for trading; stocks, bonds, futures, commodities, options, mutual funds, ETF's, all kinds of derivatives like swaps and forwards and, of course, contracts or spot Forex.

Perhaps it's not a surprise, that majority of people start their trading adventure in stocks. These financial vehicles are relatively familiar to most individuals. They are mentioned in the media every day, newspapers always provide price quotes for them. Most of us own or know somebody who owns stocks. That may be direct holding in brokerage account, or an indirect one, through mutual fund or retirement plan.

Taking that under consideration, why should a trader branch out into the Forex markets? Entire books could be (and have been) written on the subject. Reasons can be very diverse and compelling, but also fairly technical and complex. We are going to focus on a few, most obvious, factors, mentioned here in no particular order.

Liquidity- Forex is the most liquid financial market in the world. Period. Published figures vary from source to source, but they all agree that total daily volume is in the vicinity of 2 TRILION a day. It's really hard to comprehend, but it's more than all other financial markets in the world combined. To give it practical meaning- there is no problem to get in or out of the market no matter what size. There is always somebody on the other side, counter party to your trade, which may not be a case in a lot of other markets.

Long term trends- strength or weakness in a given currency is usually a reflection of a given country's economic health, national policy and fiscal state. These factors do not change overnight. They are in place for a long time, often years, producing extended trends in treaties, which may easier to follow than moves in other markets. When you add some knowledge of technical analysis, these long term trend can produce number of potentially profitable trading opportunities.

Abundance of information- there is a constant flow of government's economic reports, political developments, trade issues and a plethora of other fundamental data that media is quick to pick up and make available for immediate use. At times it might seem there is too much data, but if fundamental analysis is your thing, there is certainly enough to consider.

Around the clock trading- unlike stocks, Forex trading is not limited to set hours of local time where the exchanges are located. It moves around the globe as business day goes from Australia and New Zealand, to Tokyo and rest of Asia, followed by Europe and North America. Just as soon as businesses shut down in USA, they are opening again in the far east. Truly global market place.

Diversification- courses are treated as a separate asset class. While any single cross can be, and sometimes is, correlated to some other instruments, a basket of currency pairs will have a life of it's own, not moving closely in step with other assets. Great way to spread risks or simply diversify ones holding, potentially making some profits while remaining parts of portfolio are non productive.

These are but a few and very general reasons why Forex is worth at least taking a look at. In the second part of this article we will focus on some additional and quite specific aspects of trading in spot currency markets.

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Source by Mike Kulej

Automatic Forex Crusher Upstages All Other Forex Trading Systems

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Forex is currently the fastest growing type of market trading available now days. It moves around 3 trillion dollars worth of trades a day and has members who are from businesses, banks and private sources. There are new members every day and long time members keep coming back because of the excitement of the game. For those who are new, this process may seem daunting. Fortunately, you do not have to know a thing about market trading to be involved in the market. Though this may sound completely contrary to logical though, it is true. Here is how this is possible.

Automated Forex Crusher is an automated program that takes your account and buys and sells on Forex with excellent accuracy and skill. It was created by professionals who know the market and how it works. It uses advanced algorithms to ensure that trades are made at the exact times they need to be for the most profit to be made. It is so effective that there have been reports of people making up to 123,000 dollars in 60 days.

In addition to the lucrative nature of this program, here are some of the great features this product has to offer:

  • Only $200 capitol is needed to start up your account with Automated Forex Crusher. This money will be made up in no time at all so you will not miss this money.
  • There is no need to study technical lingo or take any courses to understand this program. It is simple and easy to use program for advanced as well as novice users.
  • This program automatically manages all of your trades so you have to do nothing whatsoever! You can be confident that all your trades will be made at the best time for the most lucrative trades.
  • You can use this program with any account size. You do not have to worry about how big your account is because any size is the perfect size for optimal money making! Large or small, your account will be optimized with the Automated Forex Crusher system.
  • Although it is impossible to guarantee that all trades will be winning trades, this program can guarantee that you will have winning trades up to 90% of the time! This is an excellent statistic and can give you the upper hand you need in this market.

These features are not found anywhere else and give you an upper hand when you are looking to make a great investment in the Forex market. You can have complete and utter confidence in the usefulness of this program as it has helped many Forex traders earn literally thousands of dollars in just a manner of months. Some people have even chosen to quit their jobs and be involved in Forex trading full time. That means they spend an hour a day on the computer monitoring their Automated Forex Crusher system and the rest of the time is spend with family or doing hobbies they enjoy! This program is definitely great value for money!

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Source by Jeffrey Adams

Forex Scalping: A Strategy That Minimizes Losses

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If you are involved in business and trade, you must have heard the term "Forex scalping". It is a popular way of trading that ensures that the risks of facing huge losses in business are minimized as much as possible. In this method of trading, the relevant traders open their trading positions for a short duration of time. This is generally considered to be for three to five minutes. However, the people who are known to successfully practice Forex scalping do so for less than a single minute at a time.

This strategy of trading is popular as it is considered to be a safe trading style and as the trading position is open for a brief period, the risk of sustaining large losses is reduced considering. The traders who utilize Forex scalping are not concerned with market trends and only care about bid-ask spread.

Although, the followers of Forex scalping are found to be promoting the many benefits of this strategy; it is not suitable for every one. In this method, small profits are earned which are frequent but opportunities involving large profits are ignored in order to avoid the greater risk associated with them. Forex scalpers are patient and diligent traders that wait for the frequent profits to become great with the passage of time instead of aiming to gain huge benefits in a short span of time. These traders are committed to long working hours and do not get frustrated with the demanding nature of their job. Consistency and alertness are the essential requirements of a Forex scalper. If a scalper is not diligent enough and does not pre plan the duration of Forex scalping, it might end up with a cleared up Forex account. The opening time for a Forex scalper must be clearly defined based on strategy that is so designed as to provide the maximum benefit to the trader. Forex scalping needs experience and commitment. Traders with the passage of time get an idea about how to proceed with their Forex scalping strategies. To assist those who are not so talented with such techniques or lack the time required for them, automated Forex scalping systems have been introduced. These are proving to be highly profitable and time saving for the Forex traders who want to benefit from scalping strategies.

Forex trading, although a recent trend has proven to be a risk free strategy which is beneficial for a great many traders and has offered promising results in future as well.

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Source by Waqas Waji